MANAGING FOREX RISK

Risk arising out of foreign exchange may have negative impact on the profitability and success of a company and could stem from external variables that the business may have little control over. Recognizing and managing market risk and currency exchange risk is indispensable when conducting business in other countries.

It is essential for a corporation to be aligned with the continuallygrowing and dynamic forex market. Foreign Exchange Risk Management has become significant in view of increased volatility and changing dynamics of the market. Volatile currency rates can often challenge the profitability of any venture if appropriate actions are not implemented to protect your business from such risks.

SomaSysworks with you to identify exposures and establish the appropriate risk management tools, develops and employs the strategies necessary to mitigate risks and enhance profitability and increase predictability of future cash flows by reducing exposure to sudden shifts in foreign exchange rates in ever-changing global currency markets.

We advise ways to lock-in exchange rates and minimize risk. We advise on hedging foreign currency receivables and payables via spot, forward and options to reduce exchange risk so that you don't pay much on foreign currency conversion.

We assist the companyin outlining risk management policy, setting up standard methodology and managing exchange risk through hedging. Our primary objective is to provide the companies with all relevant inputs and advice for mitigating the forex risk that facilitates appropriate product pricing and eventually stabilizebottom-line. We work with clients to recurrentlyadjust hedging strategies to make suresustained alignment with varying business necessities and market circumstances.

Our techniqueinvolves a careful quantitative and qualitative study of currency exposure, company objectives and restraints to facilitate the design and execution of a resilient risk management strategy to exploit hedging effectiveness whilst minimizing associated costs.

WHY MANAGE FX RISK?
   Minimize the effects of FX volatility on profit margins
   Increase predictability of future cash flows
   Facilitate the pricing of products sold on export markets
   Improve and stabilize bottom-line uncertainty due to FX rate variability

We assist in explaining and managing foreign exchange risk related to company functioning, policy and investments. We possess an understanding related to foreign exchange and risk management strategies.




FOREX RISK MANAGEMENT SOLUTIONS

Our philosophy is to ensure clients have strong forex risk management foundations. We can help to explain and manage FX risk related to operations, strategy and investments. Our objective is to develop with you, a cost effective, risk management program that keeps you competitive in the industry.The complete procedure of managing the risk of diverse exposures will be set up in a proficient approach in accordance with the risk appetite and managementpolicies.

We offer strategic FX expertise and our solutions include:

PRICE CONSULTING
We use a combination of tools in arriving at our price direction and forecasts. The tools and techniques that we use are a unique assortment of technical and fundamental studies. We use Elliott Wave Theory, Cycle Study, Astrological Analysis, Fourier Analysis/Spectral Analysis, Economic Analysis, Industry Analysis, Inter-market Analysis, Micro and Macro Fundamental studies etc. to determine the probable future course of price direction of various commodities. Under Price Consulting, we provide following services:

Weekly analysis and commentary on market direction and daily updates, if any
Trading strategies taking advantage of opportunities
Transparent and objective evaluation of our performance
Comprehensive progress reports

RISK CONSULTING
We advise our clients on covering their exposures after determining future direction of price movement of currencies. The idea is to make working capital management more efficient for the client. We use proprietary risk management model for risk monitoring and minimization, which helps us in determining strategies for effective hedge as per your requirement at a minimum cost. This is done to ensure that for every unit of risk taken our clients can maximize profit/gains/savings. We provide following services under risk consulting:

Weekly analysis and commentary on market direction and daily updates, if any
Supporting treasury managers/traders on market analysis
Quantification of exposure to be covered
Tracking and reviewing your FX exposure to provide customized advice
Locking in FX rates to bring stability and certainty to budgeting and insulating cash flow
Designing & Review of Corporate Hedging Program and Policy
Assistance in implementing Forex Risk Management Policies & SOP
Dissemination of decisions through a defined chain of command for seamless execution
Streamline hedge-related decision making process with hedge strategy report
Cost-efficient hedging program covering all aspects of hedging and de-hedging
Ongoing support during hedge implementation process
Measure and monitor hedge performance and evolve need-based modifications to the hedge-policy
Conference calls to ensure close interaction, and visit to client’s office if required